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REVERSE AUCTIONfor online travel agenciesBy Saluquia Gomes Hotel online distribution December 10th
Reverse travel auctions' history Late 1990’s: resulty of the emergence of internet based
inline auction tools. Early 2000: onlihnereverse auctions started to become
mainstream and the prices that FreeMarkets had commanded for its services dropped significantly.
Consequently, the reverse auction gained consolidation on the market place.
In the meantime, eBay created a online auction model where buyers compete to each other for their highest price for a particular item.
Finally, online travel compagny then copied the Ebay model with pionner comany such as priceline.
Understanding travel auctions’ principles
Inconvenient: Customer can only make one
bid, meaning he has to be careful about the price he submits.
Sometimes there is no going back without having to pay cancellation fees.
The client has to wait to see if the bid will be accepted before buying a ticket elsewhere.
Advantages:•Consumers place a bid for a ticket based on the maximum amount of money they’re willing to pay.
•The wait for the bid to be accepted by the selling company.
Skyauction.com’s example
The website’s hotels types
Luxury hotels worldwide Majority of waterfronts’ hotels Nature privildge Big room inventory Very attractive Heaven places
Sites that give customers advice on using reverse auctions
http://www.support4business.com/auctions.html http://www.purchasing.com/article/225083-Pfizer_s_pr
ocurement_provides_12_tips_for_reverse_auction_success.php
http://www.articledashboard.com/Article/Reverse-Auctions---Tips-for-Successful-Bidding/954338
http://en.oltiby.eu/resources-reverse-auctions-information
http://en.oltiby.eu/resources-reverse-auctions-information
Key points
Reverse auction is not such a big deal Customer can save a great amount of
money but can loose some as well It is important to read carefully the « name
your price » conditions The number of reverse auction sites is
constantly growing and among them « are those we should not trust
A hotel can best participate in a reverse auction site by…
Being more visible Making sure it does not destroy the
brand image According customer a good level of
security Not refusing to many bids Choosing the appropriate period of
time to sell
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